In an interview with The Wall Street Journal, Hewlett-Packard chief Leo Apotheker talked about his vision for H-P, why it was important to overhaul the board, and how the company plans to grow its software business. Ben Worthen discusses on digits. Watch the video and read the below excerpts.
Excerpts:
WSJ: Last month, four H-P directors resigned and five new board members were added. Why was it important to overhaul the board so radically?
Mr. Apotheker: The board went through a lot in 2010, and that takes a toll on people. I think it's a great gesture on behalf of our board members to say this was a painful process, we'd like to see the company do well, maybe it's time to bring in fresh blood.
WSJ: It's rare to see a change like that happen all at once as opposed to over a period of years. Why do this all at once?
Mr. Apotheker: Can I answer this with a small joke? There was a debate in the Swedish parliament in the 1960s about whether they should move from driving on the left side of the road to the right side of the road. True story. One member said jokingly we could do it gradually: On Monday the trucks, on Tuesday the bicycles, and Wednesday the cars. If a change has to happen why wait and do it gradually?
WSJ: When you took this job your character was being questioned by Oracle Corp. CEO Larry Ellison (who accused Mr. Apotheker of overseeing intellectual-property theft in his previous job at software maker SAP AG.) How did that affect you?
Mr. Apotheker: It's pretty easy not to be affected if you know the truth. I knew it was just propaganda and it was not really true. Actually untrue, to be more precise. I'm trying not to say a stronger word.
When I took this job I said that I would go on an-around-the-world listening tour, which I did. I must have met tens of thousands of employees. They had a first-hand experience of who I am. So if the attempt was to create some kind of hurdle, actually it helped because people could compare the propaganda with reality and it didn't really help the propaganda.
WSJ: What concerns did you have when you were first approached about becoming CEO?
Mr. Apotheker: When I was approached, first I was overwhelmed. It's a bit of a daunting thing to accept being the CEO of H-P given its size, magnitude and scope. And it took me a while to convince myself that I could actually do it. But now I am totally committed, and it is probably the most fascinating thing ever in my life.
I bring to the table a notion of how to bring the technologies together, a lot of customer insight, and a more global view.
WSJ: Mark Hurd was known for a relentless focus on cost cutting. Should we expect that from you as well?
Mr. Apotheker: I think you should focus on profitable growth.
WSJ: What is your vision for H-P moving forward?
Mr. Apotheker: We are right in the process of shaping it. H-P is an extraordinary company that has managed to keep much of its greatness secret. H-P needs to rekindle its innovation capabilities, H-P needs to come closer to some customers, and H-P needs to tell its story.
The technology industry is going through a massive transformation, probably the biggest one in 20 years. You will hear H-P talking a lot about "cloud" and "connectivity."
WSJ: Will that be for both consumer and corporate businesses?
Mr. Apotheker: Yes, absolutely. Being in the consumer business when the "consumerization" of IT is driving the entire industry is an immense competitive advantage.
WSJ: What are H-P's strengths and weaknesses?
Mr. Apotheker: It is No. 1 or No. 2 in each of its businesses. It has passionate people and a great heritage. It has an unbelievable innovation culture. Still. And it has great customers who are very loyal.
What's the weakness? We need to get way more business done in markets other than the U.S. We need to speak to our customers as one H-P. We need to fire up our innovation engine and get our products to market faster. It's not that we aren't innovative; it's that it takes too long to get to market. We have some weaknesses in our software portfolio. And I think we need to be far more outspoken about what H-P is all about. We didn't do that for many years.
WSJ: You've spent most of your life in Europe. What's it been like for you living in California?
Mr. Apotheker: It's a fascinating place. It's all about [the technology] industry, and you're never really out of it, even when you go hiking. That's a huge difference from anywhere else in the world.
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